Kroger announced in January that it would close the store on South Industrial Highway after the company failed to reach an agreement on lease terms with the owner of the 3-acre property, the Ufer family. Kroger moved onto the property in the 1980s and took over a 40-year lease for the 30,000-square-foot building from A&P.

Kroger spokesman Dale Hollandsworth said the 103 employees at the Kroger store on South Industrial Highway will be offered jobs at area Kroger stores.

Kroger will close at 6 p.m. June 7.

Robert P. Ufer said he has a signed lease agreement and a six-figure security deposit from Lucky’s Market. He had a meeting scheduled last week to give Lucky’s Market representatives a tour of the building.

“(Lucky’s) has opened (six) stores, and all of them to record sales so far. It is going very, very well,” Ufer said.

Founded in 2003 by Sharon and his wife, Trish, Lucky’s has six locations and is in the process of opening four stores.

Sharon describes Lucky’s Market as an “affordable natural foods” store. He said produce accounts for about 25 percent of the stores, along with grocery items, a meat department with a full-service deli, wine and beer, and a healthy living section.

The stores have a prepared-foods case with items made from scratch, a salad bar, an olive bar and a cheese island.

Lucky’s Market works with local farmers and businesses, and it also has its own organic farm in Boulder, Colo.

Sharon said the market could have garage doors installed on the Ann Arbor building, so customers feel as if they are walking into an open-air market.

Lizzy Alfs is a business reporter for The Ann Arbor News. Reach her at 734-255-2638, email her lizzyalfs@mlive.com or follow her on Twitter.